Invalid Documents Tied to Bank of America Foreclosures

Invalid Documents Tied to Bank of America Foreclosures in Bay AreaBanks and their subsidiaries are still filing invalid documents and wrongly foreclosing on properties,  an analysis of thousands of documents and lawsuits show in California’s Bay Area.
The findings by the Center for Investigative Reporting and NBC Bay Area comes despite recent bank settlements with state and federal regulators and a new California law that tightens consumer protections.
At the center of the report is Bank of America, which plays the largest role of any bank in Bay Area foreclosures.  BofA is one of the five big banks under the National Mortgage Settlement, which was suppose to settle charges of “robo-signing” and other foreclosure wrongdoing or mishandling.
From July 2008 through October 2012, Bank of America’s foreclosure trustee, ReconTrust, handled 1 in 5 defaulted properties in the Bay Area, about 70 percent more than the next biggest trustee, according to RealtyTrac, the real estate information company.
The report found evidence that Bank of America and its subsidiaries skirted proper procedures in foreclosure filings, NBC Bay Area said.
“These practices included lying on fraudulent loan transfers and altering dates on property records, which allowed Bank of America to initiate foreclosure and collect payments and fees for home loans it did not own,” reads the article by Matt Drange and Amy Julia Harris, Center for Investigative Reporting, and Elizabeth Wagner, NBC Bay Area.
During the past five years, 184,000 Bay Area properties went into default. Last year, the value of these loans exceeded $11.6 billion.
The following reviewed the documents for the report: Jay Patterson, a forensic accountant and certified fraud examiner in Arkansas; Ben Weber, who formerly worked for the city of San Francisco analyzing property records; and Marie McDonnell, a private auditor in Massachusetts.
They reviewed hundreds of loan documents and property records at the request of CIR and NBC Bay Area.
A Bank of America spokesman told CIR and NBC Bay Area that ReconTrust does not falsify documents.
Bank of America issued a statement saying that it had made significant improvements to its foreclosure process since 2010 and had helped nearly 300,000 of its California customers avoid foreclosure.
Bank of America relies on ReconTrust to execute a foreclosure. Some states have taken legal action against the Simi Valley company, which Bank of America acquired in 2008 along with Countrywide, one of the primary players in the subprime mortgage buildup before the mortgage industry collapse.

One thought on “Invalid Documents Tied to Bank of America Foreclosures

  • May 10, 2013 at 9:29 pm

    Might want to kick the tires on the rest of these nasty banks because they all have rules from the same playbook!!!!

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